So, who gets access to the cap table?

In general, the CEO, CFO, the board of directors, and investors with information rights get access on an ongoing basis.

Attorneys, auditors, and other financial professionals may get access to the cap table for specific projects.

Employees generally don’t get access to the full cap table.

Employees should get information about their ownership after running a fully diluted cap table.

It’s important that employees know the value of their equity, but they don’t need to know everyone else’s equity,

Employees should also know the potential for dilution from future financings.

Some companies are moving to greater transparency and may give more information about the ownership in aggregate such as how much ownership do non-executive employees have.

If one wants access to the cap table, then they should focus on joining a company at the management level such as a co-founder position. 

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

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Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.